BioNTech settles $870M patent dispute with CureVac, clearing path for $1.25B buyout

BioNTech will pay up to $870 million plus royalties to CureVac and its partner GSK to resolve a COVID-19 vaccine patent fight, removing a key obstacle to its planned acquisition of CureVac.

Why it matters: The settlement ends a years-long legal battle, averts potentially larger court-ordered damages, and accelerates BioNTech’s integration of CureVac’s mRNA assets and patents, strengthening its competitive position in vaccines and therapeutics.

Backstory:

• The dispute began in 2022 when CureVac claimed BioNTech’s COVID-19 vaccine, Comirnaty, infringed on its mRNA technology patents.

• GSK entered the picture as CureVac’s development partner on mRNA vaccines, making it a co-owner of certain patents and a claimant in the lawsuits.

• Court battles were underway in the U.S. and Germany, with potential damages estimated up to $3B if BioNTech lost.

• CureVac’s own COVID-19 shot failed in testing, forcing it to pivot to other mRNA programs.

Big picture: The settlement positions BioNTech to control CureVac’s IP portfolio without further courtroom risk, enhancing its pipeline in mRNA-based COVID-19, influenza, and other vaccine programs.

Zoom in:

• Settlement terms: GSK will receive $370M upfront, $130M after buyout closes, while CureVac receives $370M. Both CureVac and GSK get 1% on product sales covered by CureVac’s patents from Jan. 1, 2025.

• Pfizer will cover $80M of the settlement and half of GSK’s royalties for COVID-19 sales.

What’s next: The settlement grants BioNTech and Pfizer a license to sell mRNA COVID-19 and flu vaccines in the U.S. now, and globally once the CureVac deal closes. The $1.25 billion all-stock acquisition of CureVac is expected to close by the end of 2025.